As the initial glamour of cross-border e-commerce fades, systemic issues concealed behind rapid expansion are coming to light. The recent announcement of an official investigation into Kuajingtong (Cross-Border E-Commerce) has thrust former Globalegrow founder Xu Jiadong back into the spotlight.
Xu publicly claims the investigation stems from personal financial disputes and private conflicts with Kuajingtong's actual controller, Yang Jianxin. He alleges persistent harassment from Yang since his forced departure from Globalegrow in 2021.
While Yang has yet to respond publicly, the ripple effects are already evident. Multiple suppliers formerly serving Globalegrow have come forward with allegations of unpaid debts. Lin Fengsheng of Yihaitong Co. Ltd. revealed outstanding payments totaling 1.94 million yuan (approximately $270,000) from 2018-2019, with additional discrepancies in accounting records. He questions whether Xu manipulated accounts during his tenure.
Another supplier, Guo Weijian, identifying himself as legal representative of Shenzhen Diao Technology Co., attributes his company's bankruptcy directly to over one million yuan in unpaid Globalegrow invoices.
Though some industry peers continue to express confidence in Xu's character, these endorsements fail to overshadow Globalegrow's longstanding debt issues with suppliers. The current controversy threatens to further erode supplier trust in Kuajingtong's operations.
The complete truth awaits further investigation, but the damage to small and medium suppliers is undeniable. Affected businesses retain full rights to pursue legal remedies while awaiting regulatory clarification. This incident serves as a stark reminder for the cross-border e-commerce sector: rapid growth must be balanced with compliance, supplier protections, and sustainable business practices.